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US HMOs (Health maintenance organisations) suffer industry-wide loss:

This article was originally published in Clinica

Executive Summary

Health maintenance organisations (HMOs) in the US recorded a $768 million loss in 1997, with 57% of them losing money during the year, according to a new study from the independent rating agency, Weiss Ratings. For every dollar received, HMOs paid out 90.1 cents in medical expenses and 12.8 cents in administrative costs, wiping out any profit. Last year was the third consecutive year of declining profits for the industry, but the first year of an actual industry-wide loss, says the study, which covers 96% of all HMOs in the US.

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